The tariff classification and status under the North American Free Trade Agreement (NAFTA), of jackets from Canada; Article 509

N068102 July 28, 2009 CLA-2-62:OT:RR:NC:TA:348 CATEGORY: Classification TARIFF NO.: 6210.40.5020 Mr. Craig Fisher Mustang Survival Corp. 3810 Jacombs Road British Columbia Canada V6V 1Y6 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of jackets from Canada; Article 509 Dear Mr. Fisher: In your letter date, June 30, 2009, you requested a ruling on the status of jackets from Canada under the NAFTA. Style MC1504 is a thigh-length jacket with a shell made from a woven 100% nylon fabric with a visible coating on the inner surface and reflective strips of fabric on the body and sleeves. It features: a full front opening with zipper closure extending to the top of the collar, covered by a storm flap with a hook and loop closure; long sleeves w/neoprene cuffs and an adjustment band w/hook and loop closure; slant, zippered pockets at the waist. The jacket is fully lined with a woven fabric and has a web belt with plastic buckle at the waist. It also features an interlining of closed cell foam for insulation and flotation. MC1504vT3 is similar in construction and features but has a slightly different shell fabric, also composed of 100% nylon woven fabric with a visible coating on the inner surface Both garments are outerwear jackets with insulating foam that serves the additional function of providing flotation and protection against hypothermia in the event of accidental water immersion. The applicable subheading for styles MC1504 and MC1504vT3 will be 6210.40.5020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other men’s or boys’ anoraks (including ski-jackets), windbreakers and similar articles, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907, of man-made fibers.  The rate of duty will be 7.1 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. The manufacturing operations are as follows: Style MC1504 The nylon fabric for the outer shell is woven and coated in Canada from Canadian fibers and yarns. The foam insulation for the garment is manufactured in the Taiwan. The Mustang logo, woven label, and serging thread are manufactured in China. The fabric is cut, sewn and assembled into the finished garment in Canada. The garment is exported directly from Canada to the U.S. Style MC1504vT3 The polyester fabric for the outer shell of Style MC1504vT3 is woven and coated in Canada from Chinese fibers and yarns. The fabric is cut, sewn and assembled into the finished garment in Canada. The garment is exported directly from Canada to the U.S. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if-- (i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or (ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that-- (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or (iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or (iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because-- (A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or (B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts, provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note. Chapter 62, Chapter rule 3 states in pertinent part:For purposes of determining whether a good of this chapter is originating, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. The component that determines the classification for Style MC1504 and MC1504vT3 is the coated woven fabric. The applicable tariff heading for coated woven fabric is 5903.For goods classified in heading 6210, General Note 12/62.32C requires: A change to headings 6208 through 6210 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is both sewn or otherwise assembled in the territory of one or more of the NAFTA parties. . The coated woven fabric meets the terms of the tariff shift rule. The good will be cut, sewn and assembled within the territory of one or more of the parties to the Agreement. Based on the facts provided, Styles MC1504 and MC1504vT3, qualify for NAFTA preferential treatment, because they meet the requirements HTSUS General Note 12(b)(ii)(A). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the classification of the merchandise, contact William Raftery at (646) 733-3047. If you have any questions regarding the eligibility for preferential treatment under NAFTA, contact National Import Specialist Rosemarie Hayward at (646) 733-3064. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division